Pakistan’s National Assembly on Thursday approved the federal budget for the fiscal year 2025-26, along with certain amendments to the Finance Bill, despite strong protests from opposition parties. The budget, with a total outlay of Rs17.57 trillion, was initially unveiled by the federal government two weeks prior.
Finance Minister Muhammad Aurangzeb presented the finance bill in the lower house, where it received backing from the ruling coalition, including the Pakistan Peoples Party (PPP). The finance bill was approved by a majority vote following a clause-by-clause reading and the adoption of amendments through the voting process. All amendments proposed by opposition lawmakers were rejected during the proceedings.
Notably, this marks a historic occasion as it’s the first time the National Assembly’s Standing Committee on Finance has made changes to a revised Finance Bill during the parliamentary process.
Key Budget Amendments and Prime Minister’s Praise
The revised Finance Bill 2025-26 introduces several significant thresholds:
- Vehicle Purchases: A new threshold of Rs7 million has been established for vehicle purchases. If the invoice value for a locally manufactured vehicle or the import value (as assessed by the Customs Authority, including all applicable taxes, duties, levies, and charges) exceeds this amount, the buyer will be deemed an “ineligible person.” These individuals will be required to demonstrate their financial standing by presenting their last filed tax returns when applying for vehicle booking, purchase, or registration.
- Immovable Property: For applications concerning the registration, recording, or attestation of any immovable property transfer, a threshold exceeding Rs100 million, based on fair market value, will apply.
- Investment in Securities: For new investments in securities, debt securities, units of mutual funds, or money market instruments up to Rs50 million in any financial year (excluding reinvestment from similar security liquidations or reinvestment of returns on existing securities), the threshold limit will be exceeding Rs50 million.
Prime Minister Shehbaz Sharif lauded the entire economic team, particularly Finance Minister Muhammad Aurangzeb, for their diligent efforts in preparing the federal budget. He also extended his gratitude to the federal cabinet and allied political parties for their support in finalizing the budget. Earlier in the day, the federal cabinet, chaired by PM Shehbaz, had approved the Finance Bill 2025 with amendments before its submission to the National Assembly for voting.
In a separate decision, the cabinet agreed to form a committee to address a specific agenda item related to gas policy. This committee will present its recommendations to the Supreme Court (SC) as part of ongoing legal proceedings.
PPP Chairman Commends Budget Inclusions and Amendments
Speaking in the National Assembly during the budget session on Thursday, Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari expressed his welcome for the federal government’s decision to incorporate key proposals put forward by his party into the budget.
The former foreign minister praised the incumbent government for a record 20% increase in the Benazir Income Support Programme (BISP), calling it a “commendable step” and a clear reflection of the government’s commitment to social protection.
The PPP leader also highlighted that the government had raised the annual income tax exemption limit for salaried individuals from Rs600,000 to Rs1.2 million, a move he described as a major relief for the middle class, according to the state news agency. Bilawal further credited PPP’s active role in securing a 50% reduction in proposed taxes on solar panels.
The PPP chairman also stated that the party had successfully pushed for amendments to restrict the Federal Board of Revenue’s (FBR) powers of arrest. He explained that under the revised provisions, arrest powers could only be exercised after the conclusion of inquiries specifically involving sales tax fraud.
Bilawal Bhutto Zardari extended his gratitude to PM Shehbaz Sharif and Finance Minister Muhammad Aurangzeb for accepting the majority of PPP’s recommendations. “Our commitment is to ensure that every budgetary decision serves the national interest and prioritizes the welfare of ordinary citizens,” he added.
